Page 102 - SAMENA Trends - Oct-Nov 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

Digital Networks Act: Breton Lays Out Vision for EU Telecom Operators

Thierry Breton, the EU Commissioner for is in dire need of creating “a real telecom promoting concentration vertically, in each
the Internal Market, unveiled the core single market in which operators achieve national telecom market. Yet, experts say
proposals of a highly awaited EU telecom the necessary scale”, the two wrote. there is no guarantee, that a vertically
legislation, the Digital Networks Act (DNA), Smaller telecom operators fear unfair integrated operator would be able to
where he supported the concentration competition propose horizontal, or pan-European,
of telecom operators and the creation However, the European Competitive services for EU consumers. “It is rather a
of EU telecom “champions”. The yet-to- Telecommunication Association (ECTA) barrier to market integration,” Genna said,
be-published telecoms act will redefine told Euractiv it feared that “this report will adding that instead, wholesale roaming
the regulation of the EU’s telecoms serve as a spurious alibi to open the door charges should be reduced for telecom
sector, Breton wrote on Tuesday (10 to telecom deregulation, to a change in operators. Although roaming surcharges
October), aiming at addressing market the EU Electronic Communications Code are already somewhat abolished for end-
fragmentation, attracting investment, (EECC)”. ECTA fears that deregulation users, operators are still paying roaming
and securing the telecom infrastructures. for the purpose of market concentration surcharges. If wholesale roaming fees
“Telecoms operators need scale and agility would negatively impact smaller and more were to be reduced to their retail price,
to adapt to the technology revolution, but innovative telecom operators, eventually Genna said, mobile operators would be
market fragmentation holds them back,” leading to higher costs for end-users and able to compete “at a pan-European level
he said. The announcement came on the less innovation. Teixeira shared this view, with pan-European services”. In a nutshell,
tail of the results of a Commission-led saying that Breton’s Digital Networks Act mobile operators would be able to sell SIM
exploratory consultation on the future of was premature and counterproductive cards everywhere in the EU, leading to fair
the electronic communications sector “while the EU is still debating the Gigabit competition between all mobile operators.
and its infrastructure. Almost all of the Infrastructure Act and implementing the EU From there, concentration “will happen
27 EU countries have four fixed operators Electronic Communications Code”. Instead, naturally at the mobile [telecom] market
competing per national market, while he said, the Commission should support level, which will then push for higher fixed
mobile operators are numerous. This the Parliament’s push to deliver the end of [telecom] market concentration”, Genna
makes the EU a highly competitive market surcharges for intra-EU communications explained. Therefore, said Genna, the
compared to the United States, where only that EU consumers have been waiting for. EU will fairly and successfully create EU
a handful of operators compete. However, Roaming charges reduction telecom “champions” only by keeping a
“fair competition must not be confused with Innocenzo Genna, a telecom legal expert, high level of competition within its telecom
‘market fragmentation’” Cláudio Teixeira, told Euractiv that the Digital Networks market.
legal officer at independent consumers’ Act’s focus “should be on pan-European
organization BEUC, told Euractiv. “The services, not on pan-European operators”.
competition-driven EU telecoms market Breton’s statement appeared to support
has been a success story for the past two the concentration of telecom operators
decades. When compared to the US, EU within each member state, therefore
consumers pay less and get better quality
of services,” he said.
Largest telecom operators praise Breton
Breton’s message has been welcomed by
the largest European telecom operators.
Joakim Reiter, chief external affairs officer
at Vodafone, echoed the Commissioner’s
view, saying “that market fragmentation
and regulatory barriers are holding back a
true telecoms single market”. The European
Telecommunication Network Operators’
Association (ETNO) and the GSM
Association welcomed Breton’s position
in a joint publication. They praised Breton’s
focus on the issue of market consolidation
within member states, and support for
adapting the EU’s regulatory framework
in order to cut costs and red tape. The EU

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